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Mortgages
Introduction
A tracker mortgage is a type of variable rate mortgage where the interest you pay typically follows the Bank of England (BoE) base rate. As the base rate moves up or down, so too will your interest rate—and your monthly repayments.
How do tracker mortgages work?
The interest rate you pay is directly linked to the BoE base rate, plus a percentage set by your lender. For example, if the base rate is 0.5% and your lender’s rate is 2%, your mortgage rate will be 2.5%.
The pros and cons of tracker mortgages:
- When rates are low: Your monthly payments may be lower than those on a fixed-rate or standard variable rate mortgage.
- When rates rise: Your payments will increase, making it harder to predict costs.
What to expect from a tracker mortgage:
- Short-term options: While some trackers last for the life of the loan, most are available for one to five years.
- Post-tracker period: When the tracker deal ends, the mortgage typically reverts to your lender’s Standard Variable Rate (SVR).
Is a tracker mortgage right for you?
If you’re comfortable with fluctuations in your monthly repayments and want the chance to benefit when rates are low, a tracker mortgage might be a great fit. But remember, the variable nature of trackers means repayments can increase if rates go up.
Let’s talk tracker mortgages
At Maplestone, we’ll help you decide whether a tracker mortgage aligns with your financial goals. With expert advice and straightforward support, we’re here to help you find the right fit.
Ready to explore your options?
Get in touch today to learn more!
Want to find the right mortgage for you? Get in touch with one of our friendly mortgage specialists – we’re here to help!
IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, YOUR HOME MAY BE REPOSSESSED.